Born in Leigh, in Lancashire, England on 9 September 1900, he was the son of John Hilton, the headmaster of Chapel End School in Walthamstow. His father was one of the inspirations for the character of Mr. Chipping in Goodbye, Mr. Chips. (Hilton was born on Wilkinson Street in Leigh — there is a teacher in Goodbye, Mr. Chips called Mr Wilkinson.) The setting for Goodbye, Mr. Chips is believed to have been based on the Leys School, Cambridge, where James Hilton was a pupil. Chipping is also likely to have been based on W. H. Balgarnie, one of the masters of the school who was in charge of the Leys Fortnightly, where Hilton's first short stories and essays were published.
Hilton wrote his two most famous books, Lost Horizon and Goodbye, Mr Chips while living in a rather ordinary Semi-detached house on Oak Hill Gardens, Woodford Green. The house still stands, with a blue plaque marking Hilton's residence.
He was married and divorced twice, first to Alice Brown and later to Galina Kopineck. He died in Long Beach, California from liver cancer on December 20, 1954, aged 54.
Wikipedia

Towards midnight Charles Anderson finished some notes on a talk he had had with a newspaper editor at lunch—nothing very important, but he thought he ought to keep Bingay decently informed. The hour and the completion of the task seemed to call for a drink, so he went to the bathroom for some water and then to his suitcase for the silver flask that he always carried on these junkets and tried to keep replenished. He was not much of a whisky drinker (so he would say of himself when he ordered wine), but he liked a nightcap either in bed before turning out the light or during that last half-hour of dressing-gowned pottering when he would tidy up the affairs of the day both in his mind and on his desk. He was tidy by nature and years of experience had made him save, whenever possible, some small but relaxing job for a final one, even if it were only an entry in his diary or a jotting for the book he was one day going to write.